Independent Member for Clark, Andrew Wilkie, joined distillers Cam Brett and Kristy Booth-Lark, from the Tasmanian Whisky and Spirits Association, to highlight the urgent need for tax relief for whisky, vodka and gin producers.
“Tassie distillers are continuing to win awards on the global stage for their boutique whisky, gin and vodka,” Mr Wilkie said. “But the ability of this flourishing industry to recover from COVID-19 is being hamstrung and its hopes of expanding overseas are being dashed because Australia has the third highest spirits excise in the world.
“Craft distillers are paying an eye-watering $88 of tax per litre of pure alcohol, which increases twice a year and is projected to hit $100 over the next five years for each litre produced. This means when you buy a bottle of craft spirits for $80 in the bottle shop, more than half of that money is now going into government coffers.
“That’s why I’ve repeatedly pressed the Government to reform the taxation regime for Australia’s 300 boutique distillers to make it more competitive globally and fairer compared with other alcoholic beverages. Moreover, I’ve also lobbied Federal Treasurer Josh Frydenberg personally and he has instructed his staff to look into the matter.
“Easing the tax burden for distillers will free up funds to employ more staff, invest in better infrastructure and expand markets. Tasmania’s boutique distillers desperately need this reform, and some may sink without it.”
Mr Brett, president of the Tasmanian Whisky and Spirits Association, whose 52 members represent about 96% of production in the state, said excise limit changes, in particular, would help the sector realise its potential as a half-billion dollar industry in the next five years.
“We as an industry appreciate Mr Wilkie’s support because we need to take the handbrake off an industry that could easily rival winemaking in Australia,” Mr Brett said.
